The Consumers Association of Malawi (Cama) has expressed concern over the country’s Consumer Price Index (CPI) arguing that the Malawi should review its inflation basket to make it more accurate.
According to Cama, the basket of goods and services is affected by few commodities that detects the price adjustment for all goods.
Speaking to the local press, Cama executive director John Kapito said in Malawi maize and fuel prices affect prices for other goods on the land.
“Our basket is 60 percent dominated by maize and fuel while 40 percent is the inflation, you can see now that the prices for maize and fuel have gone up and now the market is responding to that with price hike on goods,” said Kapito.
He added that consumers in the country are greatly affected by the current computing system.
Consumer Price Index CPI in Malawi decreased to 226 Index Points in May from 226.60 Index Points in April of 2016 as people were in the harvesting period.
However, the CPI is expected to go high following fuel price hike and maize scarcity that has since led to high price of maize. Inflation is also to take a role following a hike on tax on goods to support the 2016/17 national budget that heavily relies on domestic revenue collection.